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Is 4 years 5 months eligible for gratuity?
You have to complete minimum 5 years for Eligibility for Gratuity. So as per question, you are not completed, so you will not get. But few companies, may grant after 4 years,if they decided as so.
What is the minimum tenure to get gratuity?
5 years
As per the Payment of Gratuity Act, 1972, one is entitled to get gratuity if she or he has furnished service continuously for a minimum of 5 years with a particular establishment or organisation.
Is gratuity payable before 5 years?
Employers consider the employee’s last drawn salary as the basis for gratuity calculation. It spells out the condition for employee gratuity if he/she has not completed five years of service. The section says that for every year of completed service (more than six months), the employee can receive gratuity.
How long do you have to serve to qualify for gratuity?
Although most rules state a minimum of 5 years, a quick Google search will tell you that the minimum eligibility for gratuity is 4 years and 6 months. In my personal experience, I served 4 years and 10 months at my first organization and post my resignation, my full and final contained the gratuity component too.
Is there continuity in service under the Gratuity Act?
The gratuity act says continued services . In this case , there is continuity in service. Further , as per SC , a year means 240 working days. Since the employee who has completed 4 years 10 months and 18 days is eligible for gratuity as he has put in service of 5 years continuously as per SC explanation.
What is the gratuity for an employee who has left a company?
If your experience is exactly or more than 4 years and 6 months on the date of your exit (LWD), you will be receiving a Gratuity of around 40,000– 50,000 (assuming you have joined as a freshser). The amount varies based on your Basic Salary. It increases with increase in years of service.
How to calculate gratuity based on service period?
And, if it is less than six months, then that year is not considered in the calculation. For instance, if your service period is 17 years and seven months, then 18 years will be considered for gratuity calculation. Whereas, if the service period is 17 years and three months, then 17 years will be considered for gratuity calculation.